Old Mutual global equities head: ‘We are looking for quality, not cheap stocks’

Old Mutual global equities head Ian Heslop has cautioned against managers pinning their hopes to interest rate predictions, as he suggests that the value investing style could still play second fiddle to growth for some time to come.

In an interview with the Telegraph, Heslop says that investors trying to forecast metrics like interest rates, growth and oil prices can suffer the “Achilles’ heel” of that data, as how those changes will impact particular assets is often uncertain.

While he cautions against having too strong a focus on particular stocks, sectors or geographies, he says the theme of looking for quality stocks while volatility is on the rise will be his priority.

He says: “’Quality’ stocks have overperformed for an extended period and value stocks have underperformed, but it’s not usual to have such consistency from one style.”

“The market is very different from how it was in 2017. Last year, we had low volatility and markets were generally rising, but even then more ‘defensive’ stocks were being bought. Risk appetite is continuing to fall and volatility is going up.

“So we now place less importance on whether a stock is cheap or expensive: we are looking for quality. For example, in a stable market when everyone is making money, people don’t care whether management is good, bad or indifferent. When markets become unstable, as they have over the past 12 months, it becomes more relevant.”

It was announced that Heslop would take over veteran manager Josh Crabb’s $179.7m (£125.5m) Old Mutual Pacific Equity and the $420.7m Old Mutual Asian Equity Income funds as Crabb’s Asia team were due to leave the firm in April.


Sale rumours swirl adviser platform tech firm

The private equity owners of platform technology firm FNZ are reportedly eyeing a £2bn sale of the company. FNZ powers the Zurich, Standard Life Wrap, Elevate, Embark and Aviva platforms. Quilter is currently replatforming the Old Mutual Wealth platform from DST technology to FNZ. According to Sky News, FNZ’s two private equity backers General Atlantic […]


True Potential to pay after pension transfer complaint

True Potential has been ordered to compensate a former client who was advised to transfer several pension pots he held into a self-invested personal pension. The Financial Ombudsman Service has upheld a complaint from Mr C in part because of the failure of True Potential to provide the level of service it promised. In late […]


Outsourced DB provider hits back at MP probe

Tideway Investment Partners says its activity with two defined benefit pension schemes has been “misunderstood and exaggerated”, in a letter to an MP committee. Tideway managing partner James Baxter has responded to questions from the work and pensions select committee about the promotion of DB transfers among employees at energy giant EDF and Magnox Electric […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Julian Stevens 30th July 2018 at 9:52 am

    Can’t fault his reasoning, OM Global Equities has for many years been an excellent fund. Alongside Fundsmith Equity, it should (IMV) be a core holding in any growth-orientated portfolio.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com